Verizon launched an upgraded internet connection that is driven by fiber web capacities that provides faster service to home. However, one issue would obviously arise – the tiered pricing will likely to come.
The next generation of fiber coming to your homes deliver 10 gbps downlink and 2.5 gbps uplink can be shared among 32 different locations. Verizon will make the announcement next year that is has achieved a huge improvement over the 2.5 gbps down and 1.2 gbps up that it has achieved after thorough study in its labs. The impending though, is client needs to get ready to dig deeper into their wallets. Even if demand for broadband isnt breaking the internet, it is surely forcing internet service providers to rethink how they charge for such a valuable service – even Verizon.
ISPs are implementing caps or tiers because they face resource constraints at points in the network. For instance, Comcast’s 250 gb per month cap is aimed at stopping folks from unduly clogging its shares, last-mile networks. Some are banking on it as a source of additional revenue and fend off potential competition from online video.
However, Verizon is looking at a different strategy. They are putting in a consumption model giving clients some sort of consumption-based billing. According to Verizon Chief Technology Officer, this is what their advantage. But why are they resorting into this kind of activity?
The answer is simple, because it is upgradable for life. The network is built to be upgradable for decades, so facing such constraints under the onslaught of video might be curved back. The fiber-based capacity is a product of $23 billion in expenditures that had just been reaped after several years’ research and development.
So to sum it all, Verizon’s FiOS will deliver faster service to customers as it implements consumption-based billing. Eventually, we will all need it!